Jonathan Morgan
Independent Analyst
- Dogecoin price may trigger a bear trap if it closes above the daily Tenkan-Sen
- Avoidance of any hidden or regular bearish divergence is critical in supporting a sustained bullish drive higher.
- The most recent swing lows must hold to prevent the resumption of a broader corrective move.
Dogecoin price jumps as much as 6.5% during the day, moving above the daily Tenkan-Sen. It had been over a week since the current close touched the Tenkan-Sen, so returning to that level was not unexpected.
Dogecoin price must close the daily candlestick at or above $0.2121
Dogecoin price could very quickly push towards $0.25 if there is a clear close above the Tenkan-Sen. There is little stopping Dogecoin from pushing higher between the Tenkan-Sen and 38.2% Fiboancci retracement at $0.2324. The oscillators support further upside potential if buyers can rally Dogecoin above $0.2121.
The Relative Strength Index has shifted into bear market territory and shows support found against the first oversold condition at 30. The Composite Index has a bullish crossover of its fast and slow-moving averages. However, If Dogecoin price fails to close above the Tenkan-Sen, then hidden bearish divergence will develop – a warning that downside pressure is likely.
DOGE/USDT Daily Ichimoku Chart
Traders should also pay attention to the location of the Chikou Span, which is currently below the Cloud.
While the upside momentum remains strong during the intraday session, traders should be reminded that weekends are notoriously volatile. The most recent swing lows at $0.194 are not far away and could easily be broken. A breakdown below $0.1940 would likely create a violent move towards the $0.1211 value area.
Like this article? Help us with some feedback by answering this survey:
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Space ID price succumbs to selling pressure with $3.54 million worth of ID tokens unlocked in a cliff event
Space ID (ID) price remains bullish based on the Parabolic SAR price-tracking indicator, which continues to track ID price from below. However, the token is trading at a value that is significantly lower than its rate 24 hours ago, an outcome attributed to its scheduled token unlocks event.
Quant price maintains steady multi-month downtrend but 60% of QNT holders remain above water
Quant (QNT) price is trading with a bearish bias, a steady state that has prevailed for the most part of the year. Despite the downtrend, the majority of QNT token holders remain above water, sitting on unrealized profit.
Optimism receives backlash after decision to split 116 million OP tokens for treasury management
Optimism network recently announced the sale of 116 million OP tokens valued at around $162.4 million in a private sale to seven purchasers for treasury management. While the transaction was not expected to impact OP price, it has provoked backlash from onlookers.
Binance unintentionally causes Ethereum gas fees to soar 1,900% as hundreds of inactive wallets move ETH
With many transfers happening within a thin timeframe, Ethereum gas fees soared 1,900%, moving from 15 to around 300 Gwei. The same was reflected in simple Peer-to-Peer (P2P) transactions, which soared from the conventional 40 cents to around $10, data from Dune analytics shows.
Bitcoin: BTC contemplates crash in September
Bitcoin price remains unfazed by the US CPI announcement on September 13 and continues to move in a range. The weekly chart, however, shows a potential short-term recovery rally that could set the stage for a steep correction.